Provide an appropriate response.Suppose that a simple economy consists of three sectors: agriculture (A), manufacturing (M), and transportation (T). Economists have determined that to produce one unit of A requires
units of A,
units of B, and
units of T, while production of one unit of M requires
units of A,
src="https://sciemce.com/media/4/ppg__tttt0616191201__f1q59g5.jpg" style="vertical-align: -17.0px;" /> units of M, and units of T, and production of one unit of T requires
units of A,
units of M, and
units of T. There is an external demand for 20 units of A, 40 units of M, and 10 units of T. Determine the production levels necessary to meet the external demand.
What will be an ideal response?
The Production Levels are:
64 units of Agriculture,
111 units of Manufacturing, and
74 units of Transportation.
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